Note

When calculating the capital gain or loss on the sale of capital property that was made in a foreign currency:

convert the proceeds of disposition to Canadian dollars using the exchange rate in effect at the time of the sale;

convert the adjusted cost base of the property to Canadian dollars using the exchange rate in effect at the time the property was acquired; and

convert the outlays and expenses to Canadian dollars using the exchange rate in effect at the time they were incurred.

When you sell, or are considered to have sold, a capital property for more than the total of its ACB and the outlays and expenses incurred to sell the property, you have a capital gain. When you sell, or are considered to have sold a capital property for less than its ACB plus the outlays and expenses incurred to sell the property, you have a capital loss. See how to calculate a capital gain in this example.

Special rules can sometimes apply that will allow you to consider the cost of the capital property to be an amount other than its actual cost. For more information, see Adjusted cost base (ACB).

Generally, the inclusion rate for 2015 is 1/2. This means that you multiply your capital gain for the year by this rate to determine your taxable capital gain. Similarly, you multiply your capital loss for the year by 1/2 to determine your allowable capital loss. If you need a rate for a prior year see inclusion rates for previous years.

You can apply 1/2 of your capital losses against any taxable capital gains in the year. For more information see Losses and deductions.